Donations, grants and subsidies not recorded in the accounting book

Lesson Summary-Donations, grants and subsidies not recorded in the accounting book for Cambodia Tax

If donations, grants and subsidies are not recorded in the accounting book as income, so then tax authority required these amounts as taxable income for tax on income (profit).

Tax on income (profit) is rate at 20% (standard rate).

Example 1

ABC is good social responsible and reputational company. At past time, companies help homeless people, hospital and pagodas. Unfortunately company’s building fired and property and asset are destroyed by fire. Charitable people donated $10,000 to ABC Company.

Required

Recommend this donation for tax treatment of tax on income (profit).

Answer

Donation $10,000 from charitable people is subject to tax on income (profit)